Sebi orders 4 cos to refund public money within 3 months

Eris Energy had garnered over Rs 2 crore from 205 entities during 2011-12 to 2013-14, KKDIL had raised over Rs 35 lakh from 10,289 investors between 2011-2013, United Medicine and Surgical Industries had raised 71 lakh from to 1,538 persons and Green India Infra Projects also raised funds by issuing securities.

Eris Energy had garnered over Rs 2 crore from 205 entities during 2011-12 to 2013-14, KKDIL had raised over Rs 35 lakh from 10,289 investors between 2011-2013, United Medicine and Surgical Industries had raised 71 lakh from to 1,538 persons and Green India Infra Projects also raised funds by issuing securities.(Reuters)

Markets regulator Sebi today ordered four firms –Eris Energy, KKDIL Nidhi, United Medicine and Surgical Industries and Green India Infrastructure — and its directors to refund investors’ money which they raised illegally by issuing securities, within three months.

Besides, the companies and their directors have been barred from the capital market for four years.

Eris Energy had garnered over Rs 2 crore from 205 entities during 2011-12 to 2013-14, KKDIL had raised over Rs 35 lakh from 10,289 investors between 2011-2013, United Medicine and Surgical Industries had raised 71 lakh from to 1,538 persons and Green India Infra Projects also raised funds by issuing securities.

Since the securities were issued by the firm to more than 50 people by each company, they qualified as a public issue that requires compulsory listing on recognised stock exchanges. They were also required to file a prospectus, among other things, which they failed to do.

In four similar-worded orders, the regulator said the companies and their directors “shall within a period of three months from the date of this order, jointly and severally refund the money” collected through the issuance of securities along with an interest at the rate of 15 per cent per annum from the date of receipt of money till the date of such refund”.

The firms and their directors have been restrained and prohibited from buying, selling or otherwise dealing in the securities markets for four years and the ban will continue till the completion of refunds to investors.